Carlos Nieto, Global Product Line Manager Energy Storage, Packaging and Solutions at ABB, highlights the ever-mounting case for battery energy storage solutions.

The battery energy storage solutions (BESS) market is accelerating rapidly. For utilities, energy storage is becoming a critical enabler of the eco-transition, given its ability to balance the variability of renewable generation and build resilience. This sits alongside industrial and commercial growth as operators seek to secure reliable power supply amid continued grid instability.

Last year, renewables made up almost a third of global electricity generation. By 2026 this figure will likely be equivalent to today’s fossil fuel and nuclear energy capacity combined1, bringing several new challenges to the power sector.

Existing power infrastructure was designed to generate, transmit and distribute electricity in real-time, under the basic assumption that the amount fed into the grid is always equal to the amount consumed. But the inherent variability of wind and solar, including potential imbalances in supply and demand, and changes in transmission flow patterns, make balancing the existing grid problematic.

Added to this, global warming and severe weather events continue to impact energy costs and threaten to increase local power outages. The broader adoption of electric vehicles is also set to drastically increase load requirements.

One powerful solution to address each of these challenges are battery energy storage solutions. By allowing electricity to be stored for prolonged periods and released on demand, storage offers an effective way for utilities to absorb and manage fluctuations in supply and demand, and better accommodate unplanned outages.

In addition to utilities providers, more industrial and commercial businesses are looking to invest in BESS to avoid blackouts and mitigate against energy instability. These systems allow businesses to manage energy costs by leveraging peak shaving, load shifting and maximization of self-consumption. They also provide the reassurance of critical backup power, preventing revenue losses in the event of a power outage - a single hour of downtime is estimated to cost a large commercial UK organization £8,500.

The cumulative effect is a record growth trajectory, with the global battery energy storage market predicted to grow from $9.21 billion in 2021 to $26.81 billion in 20282. But with so many different options now on the market, varying greatly in terms of quality and functionality, where do those seeking to invest in battery energy storage even begin?

Where to begin?

The first consideration should be safety. Any grid provider or commercial operator has a duty of care to ensure safe and secure working conditions for personnel and other maintenance staff. This is even more important when you consider that these installations may be located in public spaces, such as parking lots, where children and other vulnerable members of society may be present.

Any solution selected must have been factory-tested and pre-engineered to reduce risk. It must also be contained in a lockable enclosure to prevent unauthorized entry and protect components from vandalism.

Scalability must also be accounted for. The shift to renewables is making it harder for utilities to predict how much energy they need to supply the grid at any time. Accelerating decarbonization efforts and the introduction of new technologies mean it is equally difficult for businesses to predict what loads they may require a year from now, never mind five. The ability to grow, support wider strategic objectives and scale up is essential when specifying any type of battery energy storage investment. Modular manufacturing and deployment approaches enable a rapid, flexible response to evolving requirements.

Thirdly, it’s important to ensure that any new system integrates into the existing digital monitoring systems the organization has in place. These systems can provide operators with the insights needed to make better decisions about energy savings and emissions. For utilities, it is likely that energy storage will form part of a wider grid modernization program, while commercial and industrial operators may be thinking about a long-term transition to smart buildings, both of which must be built on a strong digital foundation.

At ABB, we realize that specifying a battery energy storage solution can be challenging, which is why we work closely with our customers to not just specify the most suitable solution but to ensure that their investment aligns with their long-term strategic goals and decarbonization journey.

As the world moves towards its vision of a low carbon society, it is becoming clearer that this cannot be achieved without battery storage. From empowering utilities to deliver renewable energy in an efficient, secure, and resilient way, to helping industry decarbonize, optimize and gain energy security, it’s easy to see why storage has become so widely regarded as our energy future’s unlikely secret weapon.